The Consumer Financial Protection Bureau and the Federal Trade Commission are investigating 51 nonbank firms involved in mortgage lending or other areas of the housing market.
Mortgage lenders and brokers have been issued a warning from the CFPB saying "they must immediately stop running 'potentially misleading advertisements,' including those targeting veterans and older Americans," writes American Banker's Joe Adler.
Kent Markus, the agency's enforcement director released a letter to 32 firms stating, "While we have not made a determination at this time regarding whether your advertisements violate the law, we urge you to review your marketing materials to ensure that you comply with the law."
The FTC sent 12 of its own notice letters after reviewing at home builders, realtors, and "lead generators."
"Baiting consumers with false ads to buy into mortgage products would be illegal. We will conduct a fair and rigorous investigation into these issues and will take appropriate action for any violations we find," CFPB Director Richard Cordray said in a press release.
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